EUR/USD balanced around 1.0650 on hawkish FOMC minutes

Currently, EUR/USD is trading at 1.0651, down -0.24% on the day, having posted a daily high at 1.0690 and low at 1.0635.

FOMC minutes: Fed participants 'generally preferred' to change reinvestment of both treasury and mortgage-backed securities

While the euro was mixed but traded with a bearish bias, the immediate reactions had the 10y yields spiking higher to 2.37 up two basis points on a hawkish tone from the FOMC minutes. Gold is lower while the VIX is also down. The was dollar rallying against the safe-haven yen. While Fed officials discussed pros and cons of tapering versus ceasing reinvestment's, the main takeaway from the minutes is that almost at FOMC members see jobs at or near max employment while Fed officials were still divided over how close inflation was to their goal.

EUR/USD levels

"We anticipate a bearish resolution to the current consolidation centered around the 50 day MA. Last week’s bearish outside reversal delivered a decisive signal. We look to sustained weakness through 1.0650 toward the March 15 open at 1.06."  Also with a bearish bias, analysts at Commerzbank explained, " We look for losses to the base of the short term channel at 1.0587 and please note cloud support on the daily kicks in circa 1.0625 and we suspect losses will slow. Intraday rallies are indicated to now remain capped by 1.0700/10."